Here are five key facts to know about the current real estate market.

There’s a lot of information out there about the current real estate market, but not all of it presents an accurate picture of what’s going on. Today I’ll show the facts about the current market using five different infographics in the video above and explain what they mean if you’re planning to buy, sell, or invest in real estate:

1. The number of new listings is increasing (0:46). In the fall and winter of 2021, active listings outpaced new listings. Many new homes were sitting on the market for a little longer. Then, starting in February of this year, new listings began to outpace active listings. That shows that more inventory is coming onto the market than there was previously. The catch is that those listings are selling very quickly because of high buyer demand. Since inventory hasn’t caught up to the demand in our market, sales prices continue to rise.

2. New construction is finally ramping up (1:52). In terms of inventory, a lack of new homes being built has been a significant factor. After 2008, the construction of new homes slowed dramatically, and it has been below average for 14 years straight. Newly built homes are just now starting to return to average, but because buyer demand is well above average, new construction will need to continue to ramp up before the market begins to normalize.

“The longer you wait to buy, the more expensive homes will become.”

3. Homeownership is a great hedge against inflation (2:31). Owning a home is one of the best investments you can make as a cushion against inflation. Home price appreciation has outperformed the rate of inflation in almost every decade since the 1970s. Owning hard assets whose values increase with inflation can help protect from inflation’s other impacts.

4. Now is still the best time to buy a home (3:14). Headlines and market data show that home prices are still rising, and they’re expected to keep climbing for years to come. That means if you’re planning to wait until prices fall before buying a home, you might have to wait for a long time. The average home priced at $360,000 today is projected to gain over $96,000 in equity over the next five years. Purchasing a home now means you can keep that equity and build your net worth. The longer you wait, the more expensive homes will become. If your situation allows you to buy a home, now is a great time to act.

5. Home prices will continue to rise this year (4:04). Seven economic experts have released their forecasts for home price increases in 2022. The average of all these predictions is 6.7%. Again, that’s not expected to level off anytime soon.

While I don’t have a crystal ball to tell us the future of the market, you can listen to facts and data from trusted sources to help you make decisions. If you have any questions about what I’ve shared today, don’t hesitate to give me a call or send me an email. I’d love to have an honest, fact-based discussion about your situation and help you decide if you should buy, sell, or invest in real estate. Remember, It's Not the Market...it's the Marketing That Makes the Difference!!